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RBI May Cut Rate

The Reserve Bank of India will announce its first bi-monthly monetary policy review for 2016-17 on April 5, PTI reported. With inflation under check and government sticking to its fiscal consolidation path, market expectations are that the RBI may cut interest rate by up to 0.50% in its first bi-monthly monetary policy review for 2016-17 on Tuesday in order to propel growth. The government has also pared the small savings interest rate by up to 1.3% providing a cushion to the RBI for cutting the policy rate. Bankers said the high-interest rate could make the economy sluggish given that inflation is around 5%.